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CBRE Survey Finds Investors Appetite Remains Healthy for Senior Housing

The appetite for seniors housing acquisitions remains strong, with nearly two-thirds of investors planning to increase the size of their portfolios over the next 12 months, according to research by CBRE. In the Los Angeles-based company’s latest U.S. Seniors Housing & Care Investor Survey, it found investors are most interested in lifestyle-focused seniors housing.

CBRE’s head of multifamily research, Jeanette Rice, says, “Seniors housing acquisitions momentum will continue in the second half of 2018, and will likely increase, especially if the sentiment reflected in the survey materializes. Despite the increased capital-market and operational headwinds, investor interest remains robust and a lack of available product to buy should keep pricing strong.”

Independent living (34%) was identified as the best opportunity for investment, followed by assisted living (23%). The active-adult segment (19%) is also attracting considerable interest, up from 13% last year. Memory care properties continue to lose ground, with investors now seeing the least opportunity for this property type, likely due to the overbuilding in recent years.

As worries about the availability and cost of labor mount nationally, investors see ‘increased property-level operating and development costs’ (36%) as their biggest concern for a consecutive year.

Capitalization rates rose in nearly all categories, reversing a trend from prior surveys.

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About Dennis Kaiser

Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services. In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company. In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix. Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.